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Paid off/down, so why did my Credit Score Drop?

So, I paid off one credit card, paid a big chunk to two other cards and my score, on Equifax specifically, dropped 19 points. I thought paying them off and down would raise my score? Can someone explain why this happens?

10 Answers

  • kswck2
    Lv 7
    4 weeks ago

    Paying off a Large debt will drop the score a bit. But using the card and paying it off Each cycle, will Increase the rate again. 

  • Anonymous
    1 month ago

    Wait until the following month.

    Credit cards are only updated on day of statement.Being when your score will RISE. 

    if credit score is pulled on 1st, then all balances from prior month are included. 

    (3 credit cards = 3 different scores, up to a week after each statement for systems to update) but (if credit score is pulled once a month it is prior reported balances, numbers from statements)

  • 1 month ago

    When you pay off a debt, your score DOES drop slightly, then it will rise again with use of your cards.  Especially if you pay the balance off monthly. Paying off a card signals that you are not USING your credit anymore on that card.  The bureaus don't want you to actually CLOSE the accounts. They want you to USE them to record your scores. Paying off a card may signal that you are planning to close the account. 

    Don't worry about this temporary drop at all. It will rise again with use. 

  • ?
    Lv 6
    1 month ago

    For some people, paying off a loan might increase their scores or have no effect at all. ... If the loan you paid off was the only account with a low balance, and now all your active accounts have a high balance compared with the account's credit limit or original loan amount, that might also lead to a score drop.

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  • 1 month ago

    Probably, it did raise your score, but something else, probably unrelated, dropped it more.

  • 1 month ago

    once a loan is paid off, the loan is closed. Only open accounts affect your credit score. 

  • Anonymous
    1 month ago

    I bet something else caused the decline. And there can be a delay from when you pay to when the benefit shows up due to timing issues that we can't control.

    My score always goes up when my payment is finally hits the report. 

    My scores increased 6 points recently from a 2/6 payment. Except discover which is seemingly an extra month behind.

  • Sandy
    Lv 7
    1 month ago

    credit scores don't change instantaneously. it can take a few weeks for the credit company to catch up. Good job though!! Congratulations!!

  • 1 month ago

    They look at long term use, the binge and purge suddenly happening is a deviation.  If you,  from now forward,  pay it off entirely every month then it'll go up again. 

  • 1 month ago

    You watch your credit way too much.

    Do not question small bumps. 

    Why?  It could be from the pay down of the cards, it could also be from a change to the formula.

    Paying your credit cards will for sure not increase your credit score.  Your credit score increases with your credit behavior.  Paying a small amount is the same as paying a large amount or paying off in full= the simple act of making the payment each month on time increases your credit score, not how much the payment is.

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